Direct Energy Regulated Services (DERS) has announced default electric rates for November 2013. The Regulated Rate Option (RRO) sets the rate per kilowatt hour that regulated customers pay for electric energy in the ATCO Electric service territory. The rates are adjusted each month to reflect the price that DERS pays to buy energy on behalf of customers. The method DERS uses to set the RRO rates have been verified and approved by the Alberta Utilities Commission.
Depending on the rate class, the energy rate for November is approximately 2% lower than the energy rate charged last month, except the lighting rate class which is 2% higher. A typical residential customer consuming 600 kWh per month would see approximately a $1 or a 1% decrease in the total amount of their bill compared to last month.
Further information on regulated rate option and a complete list of competitive retailers can be found on the Alberta government's customer choice website at: www.ucahelps.gov.ab.ca.
Contact:Jeff LanthierManager, External RelationsDirect Energy Regulated Services 905.943.6260Jeff.Lanthier@directenergy.com
How will a typical bill this month compare to previous months based on 600 kWh's per month?
When was the last month that a typical residential rate was this low? In September 2011, the residential rate was $0.08161/kWh. A typical residential bill for September 2011, based on 600 kWh's was $144.
How does this month's rate compare to previous months? The graph above shows regulated residential electricity rates each month for the past year.
How is the RRO transition rate determined?DERS does not own any electricity generating capacity. Therefore, under a Price Setting Plan approved by the AUC, DERS purchases blocks of electricity for the upcoming month for its customers. Representatives of consumer groups, as well as an independent advisor, participate in purchase decisions with DERS. The rates to consumers represent a blended price of the electricity purchased, and include costs related to DERS' procurement activities and compensation for the consumer groups' and advisor's participation. The rates are filed with the AUC for acknowledgement, as are details supporting their derivation.
What is the Energy Price Setting Plan?DERS negotiated with consumer groups in arriving at the Energy Price Setting Plan. These negotiations were conducted under the Commission's Negotiated Settlement Rules, and all meetings were attended by a Commission observer. Upon completion of negotiations, DERS filed the Settlement Agreement, including the Energy Price Setting Plan, with the Commission, and received approval on May 5th, 2011. The Energy Price Setting Plan sets out the details of how DERS is to acquire electricity for consumers, what costs are included, and how the RRO transition rate is to be calculated. The Energy Price Setting Plan also specifies the involvement of consumer groups throughout the process.
Why do Electricity prices fluctuate?Electricity prices are set in an open and competitive market, and are influenced by many variables including and not limited to supply and demand, natural gas prices, weather, pricing and availability of competing energy sources, availability of imports and exports into the province, and market analyst's views of future trends in any of these variables.
For more information, please view the November 2013 regulated electricity rate applications on DERS' website at www.directenergyregulatedservices.com
Direct Energy Regulated Services has announced default natural gas rates for November 2013. These rates will apply to customers who have not chosen a competitive supplier within the ATCO Gas North and South service territories. The rates have been verified by the Alberta Utilities Commission.
North Service TerritoryThe North territory includes customers living in and north of the City of Red Deer.
South Service TerritoryThe South territory includes customers living south of the City of Red Deer.
Further information on regulated gas supply and a complete list of competitive retailers can be found on the Alberta government's customer choice website at: www.ucahelps.gov.ab.ca.
Contact:Jeff LanthierManager, External RelationsDirect Energy Regulated Services 905.943.6260 Jeff.Lanthier@directenergy.com
In the North Service Territory, how will a typical bill this month compare to previous months based on 14 GJs?
How much natural gas does a typical residential customer use?
How does this month's market price compare to last month? The regulated rate is based in part on the current market view of natural gas prices for the month, as reported by NGX:
Why are there adjustments this month? The formula used to calculate the regulated rate accounts for any over-or under-recoveries of actual gas costs arising from differences in:
Why do natural gas prices fluctuate?Natural gas prices are set in an open and competitive market, and are influenced by many variables throughout North America and the world. These variables include supply and demand, production and exploration levels, storage injections and withdrawals, continental weather patterns, pricing and availability of competing energy sources, and market analysts' views of future trends in any of these or other variables. Natural gas prices in Alberta are not typically a function of localized weather.
Why are North and South regulated natural gas rates different?DERS is required by the Alberta Utilities Commission to purchase natural gas for ATCO Gas' North and South systems separately. Each system has slightly different load, weather, and supply characteristics that result in a different mix of Monthly and Daily Index purchases.
For more information, please view the November 2013 regulated natural gas rate applications on DERS' website at www.directenergyregulatedservices.com
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